More Brits Are Saving, But Millions Still Live One Crisis Away from Debt

New figures from Chase, the consumer banking arm of JPMorgan Chase, show that 69% of adults in the UK have changed their spending habits to try and save more money. Almost half of those surveyed said they’re doing so to build an emergency fund, with others saving for holidays, retirement, or simply to prepare for a rainy day.

Despite the shift in behaviour, a significant number of people remain financially vulnerable. Around one in eight say they have no savings at all, and nearly one in ten report that they wouldn’t be able to cover essential costs if their income stopped suddenly.

While the findings suggest that more people are thinking ahead, frontline advice providers say the ability to save is still out of reach for many.

Speaking live on LBC this morning, Matt Dronfield, Director of Advice Services at Toynbee Hall, which leads the Debt Free Advice partnership, said, “People are doing their best to save, but for many, it’s just not possible. You can’t put money aside when there’s nothing left at the end of the month.”

He told listeners that more than 20% of people turning to their service for help with debt had ended up in that position due to a sudden life event, such as bereavement, illness, a job loss or relationship breakdown. Without any savings to fall back on, these moments can push people straight into financial crisis.

Dronfield also warned that the current cost of living pressures are forcing clients to make impossible choices. “We’re seeing people not feeding their kids or heating their homes to try and save something. That’s not saving — that’s surviving.”

Since the beginning of 2024, the service has helped over 2,200 people to build a budget, and supported more than 1,000 clients to start saving. But the reality is that many people simply don’t have the room to do either. Among those who have shared their monthly budgets, 64% have no disposable income at all once essentials are covered. Some are already in deficit.

The consequences of this are far-reaching. Around a third of clients supported by Debt Free Advice this year have faced emergency situations such as housing or food insecurity, disconnection from utilities or legal action linked to unpaid debts.

“This isn’t about poor choices,” Dronfield added. “We’re working with people who are doing everything right. They’re working, they’re budgeting, but their incomes just don’t stretch. There’s nothing left to save.”

If you’re worried about money, free and confidential debt advice is available from Debt Free Advice. Support can be accessed online, by phone or in person across London.

Listen back to Matt’s full conversation with Ian Payne on LBC this morning: